Analysis On The Economic Effect Of North American Free Trade Agreement

Regional economic integration is an important trend in the development of world economy,The North American Free Trade Area was established in 1994,It has more than 20 years of history.As the first integration organization by a wide disparity in the development of regional economy,its operation is successful,the success of it is not only across the different economic system,political system,cultural system,the gap between rich and poor,and level of development and the regional economic cooperation,more lies in the foundation of The North American Free Trade Area,whether the developed country,such as The United States and Canada but the developing countries Mexico achieve a great trade effect,investment effect,and welfare effect from The North American Free Trade Area.The North American Free Trade Area as successful examples of north-south economic dialogue,the economic effect is the fundamental problem,researching the economic effect,thus summing up the experience of the its operation over the past 20 years,to accelerate the regional economic integration and the establishment of a Free Trade Area is of great significance.Volume trade between China and Japan topped $300 billion and volume trade between China and South Korea topped $200 billion in 2010,China is Japan’s largest importer and exporter,China is Korea’s largest exporter and the largest trading partner.Setting up the similar Free Trade Area to The North American Free Trade Area,China,Japan and South Korea Free Trade Area will speed up the economic development of northeast Asia and improve the international status of China,South Korea and Japan.The North American Free Trade Area of economic effects for China,Japan and South Korea Free Trade Area construction has important guiding significance.This article first to the related theory of Free Trade Area is introduced in detail,the relevant theory of The Free Trade Area mainly include Free Trade theory,the theory of Customs Union,Trade Protection theory,Market theory and the theory of Comparative Advantage,these theories provide solid theoretical foundation for the building and development of The North American Free Trade Area;Secondly,aiming at the economy effect of The North American Free Trade Area made a comprehensive analysis,economic effect mainly includes the Trade Creation effect,Investment Creation effect and Welfare effect;Finally,on the basis of trade,investment and welfare effect of the North American Free Trade Area operating more than 20 years of experience and lessons,and to offer some advice for the construction of China,Japan and South Korea Free Trade Area.